High Level of Construction Activity Continues to Stretch Skilled Labor Availability

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Turner Construction Company announced that the Fourth Quarter 2019 Turner Building Cost Index—which measures costs in the non-residential building construction market in the United States—has increased to a value of 1177. This represents a 1.29% quarterly increase from the third quarter of 2019 and a 4.84% annual increase from the fourth quarter of 2018, respectively. “We continue to see the national construction market fairly busy with several large projects starting in the fourth quarter,” said Attilio Rivetti, the Turner vice president responsible for compiling the cost index. Attilio continued, “Raw material costs in the fourth quarter of 2019 have been … Read more

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Industry Survey Shows Strong 2020 Demand for Projects and Workers

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Construction spending rose 4.1% from November 2018 to November 2019, while industry employment grew in 226, or 63%, out of 358 metro areas, according to a new analysis of federal data released by the Associated General Contractors of America. Association officials noted that its recent survey found most contractors are optimistic about the dollar value of projects available and expect to keep adding workers in 2020 but they are finding it hard to fill positions and anticipate it will continue to be hard to hire employees. “Both the actual spending totals for November and our members’ expectations for 2020 point … Read more

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Outlook Predicts Economic Slowdown, Broad-Based Impact on Construction Growth

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Dodge Data & Analytics recently released its 2020 Dodge Construction Outlook, a mainstay in construction industry forecasting and business planning. The report predicts that total U.S. construction starts will slip to $776 billion in 2020, a decline of 4% from the 2019 estimated level of activity. “The recovery in construction starts that began during 2010 in the aftermath of the Great Recession is coming to an end,” stated Richard Branch, chief economist for Dodge Data & Analytics. “Easing economic growth driven by mounting trade tensions and lack of skilled labor will lead to a broad-based, but orderly pullback in construction … Read more

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Construction Employment Increases in 38 States, D.C. from November 2018 to November 2019

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Thirty-eight states and the District of Columbia added construction jobs between November 2018 and November 2019, while construction employment increased in 18 states from October to November, according to an analysis by the Associated General Contractors of America of Labor Department data. Association officials noted that a survey it recently released found most contractors expect to keep adding workers in 2020 but they are finding it hard to fill positions and anticipate it will continue to be hard to hire employees. “It is encouraging that so many contractors were able to add employees even with overall unemployment at a 50-year … Read more

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ABC’s 2020 Construction Economic Forecast: Momentum Persists, Despite Uncertainties

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Associated Builders and Contractors’ Chief Economist Anirban Basu forecasts continued momentum for the construction sector next year but advised an overall “wait-and-see” approach based on leading and lagging indicators and economic uncertainties. Although ABC’s Construction Backlog Indicator—a leading indicator that reflects projects under contract yet to be executed—climbed to nine months in August 2019, construction spending and employment—lagging indicators—have started to soften. Yet, while spending in private nonresidential categories such as office and logging has decreased, public spending categories remain a bright spot. “Indeed, one of the sources of strength for the U.S. economy over the last year has been … Read more

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